Question 1

Which of the following best describes the purpose of using of an opportunity-risk matrix for comparing countries?

Accepted Answer

A)  narrow alternatives so decision makers can make a detailed analysis of the strongest candidates 
B)  eliminate countries that have specific unacceptable conditions 
C)  determine whether to use a concentration versus diversification strategy for international expansion 
D)  estimate where competitors are most likely to globalize 
A)  narrow alternatives so decision makers can make a detailed analysis of the strongest candidates 
B)  eliminate countries that have specific unacceptable conditions 
C)  determine whether to use a concentration versus diversification strategy for international expansion 
D)  estimate where competitors are most likely to globalize

Question 2

In developed countries,the percentage of the working-age population (using today's standards)is expected to rise by 2050.

Accepted Answer

A) True 
 B)False

Question 3

Why do companies engage in international harvesting or divestment?

Accepted Answer

Companies commonly reduce commitments in

Question 4

What is scanning? What opportunities and risks are most relevant to scanning?

Accepted Answer

To compare countries,managers use scanni

Question 5

Headquarters management often feels that people within an established operation are the best judge of the operation's investment needs.

Accepted Answer

A) True 
 B)False

Question 6

A manager has the task of collecting and analyzing data that will help the firm decide where to locate its international operations. Which of the following best describes how the manager should handle this task?

Accepted Answer

A)  conduct extensive research, regardless of the expense, in order to avoid costly mistakes 
B)  compare the costs of data collection with the probable payoff for the firm in order to budget and schedule the collection 
C)  continue data gathering until all data have been collected, regardless of how long this takes 
D)  focus all data collection on governmental resources because they have the highest reliability 
A)  conduct extensive research, regardless of the expense, in order to avoid costly mistakes 
B)  compare the costs of data collection with the probable payoff for the firm in order to budget and schedule the collection 
C)  continue data gathering until all data have been collected, regardless of how long this takes 
D)  focus all data collection on governmental resources because they have the highest reliability

Question 7

Comparability of economic information among countries is hampered by countries' use of different definitions for similar terms.

Accepted Answer

A) True 
 B)False

Question 8

Sales potential is probably the most important variable in determining international location decisions because consumer demand exceeds supply.

Accepted Answer

A) True 
 B)False

Question 9

The lower survival rate of foreign companies in comparison to local firms for many years after they begin operations is known as ________.

Accepted Answer

A)  ethnocentric reaction 
B)  polycentric reaction 
C)  liability of foreignness 
D)  most-favored-nation behavior 
A)  ethnocentric reaction 
B)  polycentric reaction 
C)  liability of foreignness 
D)  most-favored-nation behavior

Question 10

When examining economic and demographic variables to compare countries' sales potential for your product,you should also consider all the following EXCEPT which one?

Accepted Answer

A)  If countries depend heavily on the import of raw materials, what is the price of elasticity for the demand? 
B)  Consumers in some countries may more conveniently substitute certain products than consumers in some other countries. 
C)  Consumers in developing countries may leapfrog technologies by first purchasing the latest products. 
D)  Trading blocs may enhance sales potential above what is indicated in individual country figures. 
A)  If countries depend heavily on the import of raw materials, what is the price of elasticity for the demand? 
B)  Consumers in some countries may more conveniently substitute certain products than consumers in some other countries. 
C)  Consumers in developing countries may leapfrog technologies by first purchasing the latest products. 
D)  Trading blocs may enhance sales potential above what is indicated in individual country figures.

Question 11

Why do companies often treat foreign reinvestment decisions differently than new foreign investment decisions?

Accepted Answer

Companies treat decisions to replace dep

Question 12

Which of the following best explains why U.S. firms typically place earlier and greater emphasis on expansion into Canada and the U.K.?

Accepted Answer

A)  most significant sales opportunities 
B)  similarities in culture and legal systems 
C)  availability of necessary natural resources 
D)  government incentives for allied nations 
A)  most significant sales opportunities 
B)  similarities in culture and legal systems 
C)  availability of necessary natural resources 
D)  government incentives for allied nations

Question 13

In a diversification strategy for international expansion,a company would move ________.

Accepted Answer

A)  rapidly into many foreign countries, and then gradually increase its presence in those countries 
B)  rapidly into a few foreign countries with many of its products and most of its resources 
C)  into one foreign country and fully expand its product lines in that country before moving to another country 
D)  move quickly into a regional foreign market but build up its resources in only a few of the countries in the region 
A)  rapidly into many foreign countries, and then gradually increase its presence in those countries 
B)  rapidly into a few foreign countries with many of its products and most of its resources 
C)  into one foreign country and fully expand its product lines in that country before moving to another country 
D)  move quickly into a regional foreign market but build up its resources in only a few of the countries in the region

Question 14

A manager needs to prepare a grid to compare countries for location of the firm's international operations. It would be most useful for the manager to ________.

Accepted Answer

A)  prepare an opportunity analysis in-house, but out-source the risk analysis 
B)  have agents within each country supply governmental data 
C)  prepare the risk analysis in-house, but out-source the opportunity analysis 
D)  use a team made up of people from different functions within the company 
A)  prepare an opportunity analysis in-house, but out-source the risk analysis 
B)  have agents within each country supply governmental data 
C)  prepare the risk analysis in-house, but out-source the opportunity analysis 
D)  use a team made up of people from different functions within the company

Question 15

The number of computer industry firms located in California's Silicon Valley exemplifies the concept of agglomeration.

Accepted Answer

A) True 
 B)False

Question 16

In assessing political risk,the observation of past patterns is problematic because situations may change for better or worse.

Accepted Answer

A) True 
 B)False

Question 17

U.S. companies generally put earlier and more sales-seeking emphasis on countries ________.

Accepted Answer

A)  with the largest economies 
B)  with regional trading blocs and high tariffs 
C)  where governments give operating incentives 
D)  where operating conditions seem similar to those at home 
A)  with the largest economies 
B)  with regional trading blocs and high tariffs 
C)  where governments give operating incentives 
D)  where operating conditions seem similar to those at home

Question 18

Labor cost advantages gained by moving into a country with low wages may be short-lived because tax increases cancel out the low-wage advantages.

Accepted Answer

A) True 
 B)False

Question 19

Dawson Manufacturing produces and sells DVD players and is planning to expand sales internationally. Dawson has narrowed down the list of potential countries to India and Guatemala. A Dawson manager has the task of obtaining data regarding the number of DVD players sold annually in India and Guatemala. If unable to locate this information,she might most likely estimate the sales potential of these two countries by ________.

Accepted Answer

A)  determining average wages 
B)  calculating future inflation rates 
C)  reviewing the countries' dependence on steel imports 
D)  examining the sales history of flat-screen televisions 
A)  determining average wages 
B)  calculating future inflation rates 
C)  reviewing the countries' dependence on steel imports 
D)  examining the sales history of flat-screen televisions

Question 20

Carrefour expanded internationally by first ________.

Accepted Answer

A)  entering adjacent countries 
B)  licensing its name to other companies 
C)  buying companies in foreign countries 
D)  entering many countries simultaneously with small commitments in each 
A)  entering adjacent countries 
B)  licensing its name to other companies 
C)  buying companies in foreign countries 
D)  entering many countries simultaneously with small commitments in each

Which of the following best describes the purpose of using of an opportunity-risk matrix for comparing countries?

In developed countries,the percentage of the working-age population (using today's standards)is expected to rise by 2050.

Why do companies engage in international harvesting or divestment?

What is scanning? What opportunities and risks are most relevant to scanning?

Headquarters management often feels that people within an established operation are the best judge of the operation's investment needs.

A manager has the task of collecting and analyzing data that will help the firm decide where to locate its international operations. Which of the following best describes how the manager should handle this task?

Comparability of economic information among countries is hampered by countries' use of different definitions for similar terms.

Sales potential is probably the most important variable in determining international location decisions because consumer demand exceeds supply.

The lower survival rate of foreign companies in comparison to local firms for many years after they begin operations is known as ________.

When examining economic and demographic variables to compare countries' sales potential for your product,you should also consider all the following EXCEPT which one?

Why do companies often treat foreign reinvestment decisions differently than new foreign investment decisions?

Which of the following best explains why U.S. firms typically place earlier and greater emphasis on expansion into Canada and the U.K.?

In a diversification strategy for international expansion,a company would move ________.

A manager needs to prepare a grid to compare countries for location of the firm's international operations. It would be most useful for the manager to ________.

The number of computer industry firms located in California's Silicon Valley exemplifies the concept of agglomeration.

In assessing political risk,the observation of past patterns is problematic because situations may change for better or worse.

U.S. companies generally put earlier and more sales-seeking emphasis on countries ________.

Labor cost advantages gained by moving into a country with low wages may be short-lived because tax increases cancel out the low-wage advantages.

Carrefour expanded internationally by first ________.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 12: Country Evaluation and Selection

Which of the following best describes the purpose of using of an opportunity-risk matrix for comparing countries?

In developed countries,the percentage of the working-age population (using today's standards)is expected to rise by 2050.

Why do companies engage in international harvesting or divestment?

What is scanning? What opportunities and risks are most relevant to scanning?

Headquarters management often feels that people within an established operation are the best judge of the operation's investment needs.

A manager has the task of collecting and analyzing data that will help the firm decide where to locate its international operations. Which of the following best describes how the manager should handle this task?

Comparability of economic information among countries is hampered by countries' use of different definitions for similar terms.

Sales potential is probably the most important variable in determining international location decisions because consumer demand exceeds supply.

The lower survival rate of foreign companies in comparison to local firms for many years after they begin operations is known as ________.

When examining economic and demographic variables to compare countries' sales potential for your product,you should also consider all the following EXCEPT which one?

Why do companies often treat foreign reinvestment decisions differently than new foreign investment decisions?

Which of the following best explains why U.S. firms typically place earlier and greater emphasis on expansion into Canada and the U.K.?

In a diversification strategy for international expansion,a company would move ________.

A manager needs to prepare a grid to compare countries for location of the firm's international operations. It would be most useful for the manager to ________.

The number of computer industry firms located in California's Silicon Valley exemplifies the concept of agglomeration.

In assessing political risk,the observation of past patterns is problematic because situations may change for better or worse.

U.S. companies generally put earlier and more sales-seeking emphasis on countries ________.

Labor cost advantages gained by moving into a country with low wages may be short-lived because tax increases cancel out the low-wage advantages.

Carrefour expanded internationally by first ________.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters